Man Says HOA Seized His Home Through Foreclosure

Article and Video Courtesy of Channel 9, Orlando

By Todd Ulrich

Published November 10, 2010

The homeowner told Action 9 he actually paid the HOA too much and they never noticed.

A homeowners' association in Orange County has seized a man's home through foreclosure for not paying dues. The homeowner told Action 9 he actually paid the HOA too much and they never noticed.

Bank statements show the association started rejecting his partial payments because his account was in collection. Homeowner Danny Lopez claims that when the HOA refused to reconsider its actions he set up his own escrow account and paid dues, so the association could collect later.

Stopping the payments was his huge mistake.

Association attorney Peter McGrath filed foreclosure action and the homeowner lost his $200,000 home in court.

Attorney Barbara Stage represents consumers.

"The association definitely made some mistakes. They should have never returned his payment." She called this case outrageous, because an association can't reject partial payments. It was a small amount, they should have tried to work with the homeowner."

His overpayments triggered the mess. Homeowner Danny Lopez considers legal action.

The association has foreclosed to collect $1,600.00 in unpaid dues plus legal fees!

COMMENT:

Homeowners beware! Even if you think you act in good faith and the association is to fault for the accounting mess, never stop making the payments.

And since this is YOUR HOME AT STAKE, please get legal advice -- before you suddenly sleep under the bridge! Pro-Se may be a good idea to save money in Small Claims Court, but in case of HOAs and Unpaid Dues the stakes are high. Make sure you get it right! Fighting later may be risky and very costly!